Newly founded developer Runic Games, one of several companies formed from the ashes of Hellgate and Mythos developer Flagship, today announced its first project: an action-MMO titled Torchlight.

Torchlight is billed as a simple, action-oriented online PC game in the style of Diablo. The basic setup: "Adventurers set out from the town of Torchlight into the nearby mountains in search of the magic ore that imbues their equipment with power, yet imperils their very existence."

The title is set to be published worldwide exclusively by Chinese online gaming company Perfect World.

Runic Games was founded by brothers Max and Erich Schaefer, two co-founders of Diablo developer Blizzard North.

Since the dissolution of Flagship, all 14 developers that worked on the company's action-RPG Mythos have joined Runic. The studio has also been bolstered by the addition of Diablo and Diablo II composer Matt Uelmen.

With Hellgate: London (PC) and Mythos (PC) developer Flagship Studios having laid off most of its staff and halted work on the free-to-play action-RPG Mythos, those responsible for Mythos have formed a new development company, Runic Games.

The team "intends to continue to use their expertise in the Action-RPG MMO genre to create the best games in this market," according to the press release, with more details due "in the coming days."

As with Flagship, the Runic staff involves numerous action-RPG veterans, including Fate (PC) creator and Mythos project director Travis Baldree, as well as Max Schaefer, co-founder of Diablo creator Blizzard North and Mythos executive producer.

While Flagship is essentially shut down, work on Mythos and Hellgate: London support are expected to continue through Korean publisher T3, which holds a controlling stake in former Flagship business partner HanbitSoft.